Spanish central bank favors adoption of cryptocurrencies

The Banco de España, known as BDE, has just published a new document on which it highlights the advantages offered by cryptocurrencies in the management of financial policies and the Spanish financial system. This initiative puts the country at the forefront in the adoption of the virtual currency industry. He joins the United Kingdom, Malta and Switzerland recognizing the contribution of crypto-markets to the nation as a whole.

Promote creative mechanisms in the Spanish economy

Galo Nuño, the director general of the economy of the BDE believes that the use of cryptocurrencies in banking transactions could significantly strengthen the Spanish economy. Nevertheless, he stressed the fact that only crypto-currencies issued by central banks (CBDC) would be of interest.

According to the ICOExaminer media:

“Written by Galo Nuño, a member of the Banco de España’s Directorate-General for Economic Affairs who has been given the mandate to examine the main reasons why a number of central banks are currently studying the potential consequences of Introducing such instruments, the report focuses specifically on the potential consequences and implications of digital currency for bank reserve management, monetary policy and overall financial stability. “

“Nuño focuses on the ability of digital currencies to offer a broader range of creative mechanisms to manage the general money supply, particularly to govern the amount of money circulating in the real economy when this option does not.” is not available for fiduciary money. “

Facilitate the management of monetary policy with crypto-currencies

Recent events point to a growing adoption of crypto-currencies within European borders. Spain is paying particular attention to the European Commission’s new digital asset surveys, suggesting that the country is on its way to becoming a destination of choice for blockchain and cryptocurrency businesses.

“The introduction of the CBDC improves the conduct of monetary policy through better control of market returns, which savers and borrowers face. In addition, the possibility of eliminating the restrictions associated with the zero interest rate is theoretically attractive, especially in a low interest rate environment like the one we are currently experiencing, “commented Galo Nuño.

The current system prevents the establishment of a negative interest rate. Also, the production of fiduciary money continues to grow, increasing the liquidity of existing economies. In addition, central banks are showing increased interest in creating cryptocurrencies not only for a change in the payment system, but also to include people who are not banked.

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However, the use of cryptocurrencies by governments and central banks would be a first, making it difficult for financial institutions to analyze the effects on the economy and society in general.

Do you think virtual currencies supported by a government could improve monetary policy? Tell us your opinion in the comments below.